The Parabolic SAR rule follows SAR dots for trend direction.
For the indicator formula, see Parabolic SAR — Formula.
Signals
| Condition | Signal |
|---|---|
| Price > SAR | Buy |
| Price < SAR | Sell |
Default parameters
| Parameter | Default |
|---|---|
| start | 0.02 |
| increment | 0.02 |
| maximum | 0.2 |
Where to use it
Entry, increase, reversal, exit, and directional filters. Trend-classified.
Tips
- Avoid standalone SAR entries in tight ranges; whipsaws are common.
- Higher maximum makes SAR catch price faster (more sensitive).
Example
start 0.02, increment 0.02, maximum 0.2 on BTC/USDT 1h. SAR below price at $96k, close $97k → buy. After a trend break, SAR jumps above price → sell. Avoid using SAR alone in tight ranges; whipsaws are frequent.
Related reading
- Parabolic SAR (glossary)
- Stop Loss rule — separate risk control